Looking at a daily chart of Apple (AAPL), we find ourselves searching for lows in the pattern that might serve as support or "undercut & rally" type of levels for AAPL on the way down. Right now all we see is the low of February 16, 2012 at 486.63 which it looks like the stock is trying to hold as we type in real-time. If AAPL can't hold that low, then below that there is "nothing but air" all the way down to the January buyable gap-up, around 443. It is conceivable that AAPL could hold up today and try to rally back up to the neckline around 500, but for now we can just watch this play out as we are already ahead of the game if we took a short position in AAPL yesterday on the basis of our the shortable gap-down and our SSS report of yesterday. As the stock comes down, and cathartic bursts of bottom-fishing occurs, all that serves to do is create more trapped longs, in our view, which should, we say "should," add to the selling pressure. But we will see as AAPL remains a much-loved stock, almost stubbornly so, and there are value funds lurking out there that could provide some buying support for the stock, although we consider this the least likely probability. But as we said, for the moment we just sit back and let this play out for now, as the day is only one trading hour long.
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